Tag Archives: AMD

OpenAI Secures Billion-Dollar Chip Partnership with AMD Technology

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On Monday, OpenAI and semiconductor manufacturer AMD revealed that they have entered into a multi-billion dollar agreement concerning chips, which will allow the creators of ChatGPT to purchase significant equity stakes in the chipmaker.

This arrangement provides OpenAI the chance to acquire 10% of AMD, reflecting substantial confidence in the company’s AI chips and software. Following the announcement, AMD’s stock soared by over 30%, contributing approximately $800 billion to its market capitalization.

“We are excited to announce our dedication to delivering a variety of services to our clientele,” stated Forest Norod, AMD’s Executive Vice President.

These recent investment commitments underscore OpenAI’s significance, as the increasing demands of the AI sector drive companies to advance AI technologies that rival or surpass human intelligence. OpenAI’s CEO, Sam Altman, pointed out that the primary limitation on the company’s expansion is access to computing resources, particularly extensive data centers equipped with advanced semiconductor chips. Last week, Nvidia declared a $100 billion investment in OpenAI, further solidifying the collaboration between these leading AI firms.


The agreement announced on Monday encompasses the deployment of hundreds of thousands of AMD AI chips or graphics processing units (GPUs) totaling 6 gigawatts over several years, starting in the latter half of 2026. AMD confirmed that OpenAI will establish a 1 Gigawatt facility utilizing the MI450 series chips beginning next year.

Additionally, AMD issued a warrant that enables OpenAI to purchase up to 160 million shares of AMD at just one cent each during the course of the chip trading.

AMD’s executives anticipate that this transaction will result in tens of millions of dollars in annual revenue. Due to the expected ripple effects of this contract, AMD has projected more than $100 million in new revenue over four years from OpenAI and other clientele.

“This marks a trailblazing initiative in an industry poised to significantly influence broader ecosystems, attracting others to join,” remarked Matt Hein, AMD’s Head of Strategy.

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This agreement with AMD is expected to significantly bolster OpenAI’s infrastructure to fulfill its operational requirements, Altman confirmed in a statement.

However, it remains unclear how OpenAI plans to finance this substantial deal with AMD. According to media reports, the deal is estimated to be worth around $500 million, yielding approximately $4.3 billion in revenue in the first half of 2025 while burning through $2.5 billion in cash.

Source: www.theguardian.com

Nvidia and AMD Allegedly Set to Contribute 15% of China’s Chip Sales Revenue to the US

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Nvidia and AMD have made a groundbreaking agreement to allocate 15% of their revenue from chip sales in China to the US government, a deal aimed at securing a semiconductor export license. The Financial Times reported on Sunday.

This revenue-sharing initiative includes Nvidia’s H20 chips and AMD’s Mi308 chips, with details emerging from US officials indicating that the Trump administration is yet to determine the allocation of these funds.

An anonymous official stated that the chipmakers consented to this Quid Pro Quo arrangement as a prerequisite for obtaining a Chinese export license last week.


According to export management specialists, this marks the first time US companies have agreed to a revenue-sharing model in exchange for export licenses, as reported by the newspaper. Donald Trump has reportedly encouraged these firms to invest in the US to “offset” the tariffs imposed.

In a statement to Reuters, an Nvidia spokesperson mentioned, “We haven’t shipped H20 to China for months, but we are optimistic that export control regulations will enable us to compete globally.”

AMD did not provide an immediate response to inquiries for comment.

Last week, the US Department of Commerce commenced the issuance of licenses to NVIDIA for the export of H20 chips to China, removing a significant barrier to entering key markets.

In July, the US overturned an earlier ban on the sale of H20 chips to China. Nvidia had specifically modified its microprocessors for the Chinese market to align with the Biden administration’s AI chip export regulations.

Nvidia’s chips are pivotal in driving the current AI surge, and the company became the first to surpass a market valuation of $4 trillion in July.

However, Nvidia faces growing scrutiny from Chinese regulatory bodies, with challenges likely to persist. Recently, China’s Cyberspace Watchdog summoned Nvidia to clarify concerns regarding a potential “backdoor” security risk that might grant remote access or control over the chip. Nvidia refuted these claims.

Nonetheless, concerns have been echoed in Chinese state media. Earlier this month, it was reported that officials stated Nvidia needs to furnish “persuasive security proofs” to assuage worries over security risks for Chinese users and regain trust in the market. Additionally, the WeChat national media account highlighted potential security risks posed by the H20 chip, suggesting the possibility of “remote shutdown” features via a hardware “backdoor.” Nvidia has yet to respond to these allegations.

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Source: www.theguardian.com